Your Budget Vs. The Government's Budget
Governor Culver finally unveiled his proposed budget for the next fiscal year this week. Even though the Legislature has yet to begin its work in earnest on the new budget, the governor’s suggestions provide the taxpayers an early view of what they might expect. As it looks now, if the governor’s plan is adopted, Iowans can expect more of the same fiscal problems that have plagued our state during the last three years.
Last year, Governor Culver signed the largest budget in state history at a time when our economy could not support it. As Republicans, we offered hundreds of millions in common sense savings but nearly all were ignored or voted down in partisan fashion.
Only months later, after the governor had denied he spent too much all summer long, he could no longer ignore his unbalanced budget any longer. He was forced to make a ten percent across-the-board cut in October. Unfortunately, this was all avoidable.
To be clear, Iowa does not have a revenue problem – we have a severe spending problem. Governor Culver should have scaled back his spending, listened to Iowans and accepted the Republican solutions. There was a real opportunity to sign a sensible budget that reflects the true priorities of our citizens. Iowans did not receive the fiscal leadership they deserved.
As the new budget discussions begin anew, Governor Culver has a fresh opportunity to put Iowa back on a path of sustainable and responsible spending that does not add to the tax load already burdening taxpayers. The question is, will he take this occasion to do just that?
If his initial budget outline is any indication, that answer is no. His new proposed spending is over $400 million dollars larger than the level the state’s budget is at today. At a time when families and employers are still forced to make sacrifices and cut backs, the spending increases continue.
Unless a more fiscally responsible vision for Iowa is adopted in the coming weeks, Iowans will continue to see their taxes increase. Already, Governor Culver’s actions have lead to property tax increases estimated at approximately $270 million dollars. He likes to say he has not raised taxes but Iowans know better and they can point to their property tax bills to prove it.
This new budget is also crafted by continuing the practice of using one-time dollars for ongoing expenses. He plans to raid Iowa’s savings and rainy day funds by over $200 million dollars, leaving the state’s reserves dangerously low. He continues the practice of using one-time federal bailout dollars that will not be available in the years ahead. Unless the programs are ended, a new revenue source will have to be found to pay for them and that will result in higher taxes.
Much of his projections are based on hypothetical savings from an out-of-state, highly taxpayer paid consultant. Yet, when the non-partisan analysts who work for Legislature look at the same proposals, they find results that are only small fractions of what was originally touted. For example, the consultants said one all-inclusive aspect of the government re-organization bill being pushed through the Legislature in the next few days would save $200 million dollars. Yet, when the non-partisan analysts scored it, they found it to be closer $43 million. Those kinds of financial discrepancies are found in several aspects of the governor’s budget statement and could easily leave the state’s budget unbalanced by hundreds of millions of dollars if not corrected.
If Iowans are looking for bold action in making it easier for jobs to be created, this budget proposal is also sure to disappoint. Senate Republicans believe this session should be all about jobs and growing our state. Governor Culver continues to only focus on trying to create temporary government make-work positions through his unsuccessful I-Jobs debt program, but nowhere in his budget does he make it clear that long-term private sector job creation is a priority. Instead, the higher property taxes that will come as a result of this budget are only going to erect more barriers to the creation of real sustainable jobs.
Not a single Republican in either the House or Senate voted for the budget last year because we all understood the people of Iowa were sick of the out-of-control spending and we knew the budget was unbalanced.
As Republicans, we will continue to offer our suggestions and solutions because Iowans want their senators and representatives to work hard on their behalf. But if the unfettered spending continues as it has the past three years, you can expect Senate Republicans to once again cast our votes in favor of families’ budgets rather than bigger government budgets.
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